Regulatory Compliance

ACA Penalty
Reduction Service

Our service will avoid or significantly reduce IRS penalty assessments.

The IRS is issuing ACA penalty notices for failing to distribute 1095-C forms to employees and for failing to file 1094-C and 1095-C forms with the federal tax agency by required deadlines under IRC Section 6721/6722, as required by the Affordable Care Act.

Before receiving these penalty notices, employers usually receive Letter 5699 from the IRS seeking information to determine if employers fall under the ACA's Employer Mandate regulations and if they filed annual ACA information returns to the IRS.

How employers respond to Letter 5699 can determine if they will receive an IRS penalty assessment for failing to comply with the ACA.

 

Contact us to review your options today.

In order to avoid a penalty assessment, employers should respond to Letter 5699 to demonstrate that they either are not subject to the ACA or that they have filed the required information with the IRS. Trusaic has demonstrated success in helping employers respond to Letter 5699 to avoid receiving ACA penalties from the IRS. 

 

If employers do receive an IRS penalty notice, Trusaic can help them reduce or eliminate their ACA penalties.


The IRS is issuing two types of penalty notices under IRC Section 6721/6722. Letter 5005A penalty notices are being sent to employers that have failed to distribute 1095-C forms to employees and to file 1094-C and 1095-C forms with the federal tax agency by required deadlines.

 
 
Letter 972CG is being issued to employers who filed their ACA information, but did so after established IRS deadlines.
 
 
For a large majority of employers, the IRS penalty calculation process will dramatically overestimate the full-time employee count and, in turn, the penalty owed to the IRS.
 
 
If employers do receive either penalty notice and want to reduce the penalty assessment, they must move quickly to accurately determine their full-time employee count for the tax year and generate the correct 1094-C and 1095-C tax schedules. It is VERY important that the full-time employee counts be calculated accurately because the IRS can also issue penalties under IRC Section 6721/6722 for inaccurate filings.

Our service uses our extensive ACA knowledge coupled with the expertise we have developed in migrating, consolidating and validating the data critical to submitting accurate ACA filings with the IRS.


Our ACA Specialists will calculate the correct number of full-time employees in the tax year and accurately generate the 1094-C and 1095-C tax schedules as required to successfully challenge the IRS penalty assessment in Letter
5005A.

Our ACA Penalty Resolution Service is a solution that payroll and software vendors don’t provide.

 

Trusaic works with employers directly or in concert with their insurance brokers, CPAs or law firms.

Contact us to review your options.